Your Fancy European Wine and Cheese May Get More Pricey—But Don't Blame Trump
The United States is in for another trade war, this time with the European Union, involving tariffs on about $15 billion a year in imported goods. But, unlike previous fights with Mexico and Canada, and the ongoing one with China, this isn't a whim on the part of President Donald Trump. Instead, it's a dispute over aircraft sales that goes back to the administration of President George W. Bush.
"There's always been sort of a back and forth between the U.S. and E.U. for subsidies for Boeing and Airbus," Matt Thomas, a partner in the international trade group at law firm Blank Rome, said. After years, the WTO found that portions of each side's claims were valid, "although the findings against Airbus are much more substantial than against Boeing," Thomas told NBC News.
That's where the tariffs come in, although the process can clearly take a long time. "With these kinds of WTO cases, if there's a finding against a WTO member for providing the kinds of subsidies that aren't allowed, the country that's injured by that can respond by imposing tariffs on goods from the other country," Thomas said.
"Your Fancy European Wine and Cheese May Get More Pricey—but Don't Blame Trump," by Erik Sherman was published in NBC News on July 12, 2019.